Author Topic: IBKR - Interactive Brokers  (Read 169147 times)

muscleman

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Re: IBKR - Interactive Brokers
« Reply #530 on: April 17, 2019, 09:43:52 PM »
Interesting stuff!
Can anyone run a screener to figure it out?
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Hielko

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Re: IBKR - Interactive Brokers
« Reply #531 on: April 18, 2019, 02:41:17 AM »
Yes, they can and I'm sure did liquidate the entire portfolios ex the illiquid stock but clearly it was so big in each account it didn't matter.

It's possible it was a scam but if that was true the stock would probably be a 0 now and they wouldn't have the language about "depending on market conditions" etc.   Seems more likely a sketchy company w/ market cap 500m to 2b with a small float.
I'm pretty sure it must have been some kind of scam. Normal customers don't go long their whole account in one shady Chinese stock (I'm assuming it is YRIV). Not exactly sure how the scam worked, but think you see it sort of frequently with sketchy low float companies in Hong Kong were they just weird things keep happening with the stock price. Stock price of YRIV was also suspiciously stable in early 2018. My money is that that was connected to those accounts being massively long the stock at IB.

writser

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Re: IBKR - Interactive Brokers
« Reply #532 on: April 18, 2019, 03:13:34 AM »
What makes you think it was YRIV? Though it seems a likely candidate given what happened in the stock. Few interesting points:

- YRIV has ~170m shares outstanding. Volume in the first two week of April was ~250m shares. There could be some wash trades / HFT trades in there but I'd say IB should've been able to close out a big position by now.

- A big position should've shown up as a form 4 somewhere? Though if this was a scam maybe they didn't file on purpose? The CEO owns 90m shares, could it be his position?

- Agree it almost certainly must be a scam. But how / what? Something like: buy a lot of shares: push up the price, withdraw excess margin from IB account? Alarm bells should've been going off all over the place ..

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Hielko

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Re: IBKR - Interactive Brokers
« Reply #533 on: April 18, 2019, 03:47:19 AM »
April wasn't part of the first quarter, so could be that they have now closed their position. But I'm not totally sure it's YRIV. IB says that after the drop liquidity dried up in the stock, but this one had sort of the same trading volumes pre and post drop (and indeed crazy volume last month, probably some kind of pump and dump in progress...)

given2invest

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Re: IBKR - Interactive Brokers
« Reply #534 on: April 18, 2019, 07:05:39 AM »
It's not YRIV.  The key here is:

Big drop Q4 and then bigger drop in Q1 & very low liquidity after there was decent liquidity.  I'm guessing sub $250,000 a day but def sub $1M a day.

fuzzhead1506

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Re: IBKR - Interactive Brokers
« Reply #535 on: April 18, 2019, 11:19:50 AM »
It could be so many things... long or short, so running a scan to help decide would not likely yield much fruit.

I'd imagine short VIX trade has that level of loss. Despite all of their efforts 2 years ago to mitigate the risk with higher margin requirements.  VIX more than doubled in December.

KCLarkin

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Re: IBKR - Interactive Brokers
« Reply #536 on: April 18, 2019, 11:54:35 AM »
In the transcript snippet they explicitly say it was a stock that lost value. So it must have been a long.

Spekulatius

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« Last Edit: April 18, 2019, 12:54:08 PM by Spekulatius »
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fuzzhead1506

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Re: IBKR - Interactive Brokers
« Reply #538 on: April 18, 2019, 02:21:49 PM »
In the transcript snippet they explicitly say it was a stock that lost value. So it must have been a long.

maybe I need to just go back to listening/skulking on the forum as this the second time you have appropriately corrected me in my 10-ish posts on the forum.   :-X

given2invest

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Re: IBKR - Interactive Brokers
« Reply #539 on: April 18, 2019, 02:59:45 PM »
It's not YRIV!  That went from extremely illiquid TO extremely liquid as it collapsed!  It's the opposite of what they are describing.  Go look at volumes in Q4 vs Q1.  SUPER LIQUID!